Presentation Transcript

1. Corvette Stingray Alex Ramsey Prudence Akindo Tayler Barrett
2. Automotive Industry Overview Each year, more than 80 million vehicles are produced globally and shipped all over the world The auto industry has grown with the commercialization of countries like China and India The American auto industry contributes about 3-4% of the U.S. Gross Domestic Product each year. China has more than 19 Million Vehicles on the road today United States has more than 10 Million Vehicles on the road today General Motors is the second largest manufacturer in the world, Toyota is the first, Volkswagen the third
3. Background of General Motors Corp. General Motors (GM) is a multinational American-owned holding company that owns Chevrolet, their mainstream auto manufacturing brand Spanning sales over 157 countries, General Motors has become well established in the world as a leading automaker since the beginning of auto manufacturing in the early 20th century 2012 Delivery of 9.3 Million Vehicles 2012 Automotive Revenue of $150 Billion
4. Background of General Motors Corp. Despite financial trouble during the 2008 recession, GM has improved their sales performance for the years following, including 2012, when they posted a $4.9 Billion profit The new Corvette is a hopeful symbol for GM – with the goal of reestablishing and strengthening their brand in the automotive industry as a leading, quality automaker
5. Corvette Brand History First Corvette made in 1953 The Corvette brand embodies decades of American muscle car history and ingenuity Owners of Corvette cars embrace the passion of automobiles and their heritage, harking back to the 1950s Symbol of American Pride and Ingenuity The Flagship of GM and Chevrolet
6. Corvette Brand Management Corvette’s own marketing manager, Chris Perry, stated, “We haven’t been managing the perception of the brand.” Common stereotype: “old man’s car” Chevrolet has been met with a challenge to change the perceptions of the brand to appeal to a younger audience In addition, perceptions of overall quality have not been favorable when compared to key sports car competitors like Audi and Porsche
7. Corvette Brand Management Corvette gets lapped by exotic sports car brands online in terms of social media following: Corvette’s Facebook page had1 million “likes” (on Jan. 10, 2013) Ferrari had 10 million Porsche had 4.9 million Audi had 6.2 million Indicates that the Brand struggles at its current price point. Not seen as a premium and cool brand.
8. The Competition - Porsche 2014 Porsche Cayman MSRP: from $52,600 Horsepower: 275 HP to 325 HP MPG: up to 22 city / 32 highway Engine size: 2.7L, 3.4L
9. The Competition – Audi 2014 Audi S5MSRP: from $52,000 Horsepower: 333 HP MPG: up to 17 city / 26 highway Engine size: 3.0L
10. The New Corvette Stingray 2014 Chevy CorvetteMSRP: from $51,000 Horsepower: 455 HP MPG: up to 17 city / 29 highway Engine size: 6.2L
11. Communication Objectives For success, brands must maintain their cool and young character Presence of value for the consumer has not existed for previous generations of the Corvette Corvette sits only at the interest stage of the Advertising Pyramid The new Corvette must reflect a more refined brand personality that embraces quality and athleticism in performance In addition, Corvette must bolster entire Chevrolet brand – very important for global competition
12. Communication Objectives Our goal: Make the Corvette brand a formidable competitor against other cars in the segment Porsche, Audi, Nissan GTR Create desire and action for consumers in the market for similarly priced sports cars including higher-end makes Target competition in the price range (or even higher price range) Use product differentiation strategy
13. Method of Allocation and Defined Goal Chevrolet uses the objective and sales method of allocation. Defined results must be put into place to determine needed advertising. Our defined result will be sales increase of 20% as compared to previous generation year. Two forms of advertising Online social media video spot(30 seconds) Magazine Ad (target high-end magazines & auto-magazines) After 6 Months of Advertising, evaluate sales and competitor performance
14. Communications Budget Chart shows estimates of Chevy expenditures for advertising in 2012 GM is one of the largest advertising spenders in the world - $3.9 Billion Chevrolet accounts for $1.83 Billion of the budgeted amount GM recently pulled advertising from Facebook, freeing up $10 Million for use elsewhere t
15. Product Positioning Concept Target Generation X and Baby Boomers Middle to Upper Income Key themes and Positioning Timeless Brand Athletic Performance Quality Focused Product Differentiation Price and Value Dealer Network Efficiency and MPG Latest Technology
16. Print Advertising Mediums Car and Driver Magazine 1.2 Million Circulated in 2011 Targets high-end car enthusiasts Well respected as a straight-forward and fact based reviewer Total cost for full page ad $216,787 4 Color
17. Print Advertising Mediums Robb Report Circulation of 400,000 worldwide Targets the wealthy Known for style and class Total cost for full page ad $34,000 per month
18. Web Advertising Mediums “75% of ad agency executives say that online video ads are more effective than traditional TV ads” – eMarketer Report YouTube – More than 1 Billion Unique Users visit per month Targetable to age, gender, location, video relevance to accounts Cost per view ranges from $.10 to $.50 and can be bought by view count $2,000 to advertise to 10,000 people
19. Our Proposed Magazine Ads Experience: A Timeless Machine Accentuates the Corvette Pedigree Concept 1 Concept 2
20. Our Online Video Advertisement Concept Experience: A Timeless Machine Accentuates design, athleticism, and “cool factor” Clips were compiled from Car and Driver and Motor Trend Video Reviews Instrumental music from “Tafelmusik” http://www.youtube.com/watch?v=-sBi3zaSGnQ&feature=youtu.be
21. References available at end of our final paper. Questions?